Afridigest Week in Review: Kobo comes out of the closet
+M&A Madness +Private wealth in Africa +The Capiter shitshow +Janngo's not playing around +Afridigest Lagos meetup in October +Biz ideas from Twitter +Lots of congrats! +Check out Afridigest.com
The Afridigest Week in Review is a must-read weekly recap for Africa-focused founders, executives, and investors.
Welcome back, friends! The most clicked link last week was Daniel Shi’s 'framework for opportunity sizing.' And in case you missed yesterday’s Fintech Review, it’s a good one.
Some news: We quietly began reanimating the Afridigest website over the weekend & our 'super app' article hit #1 on Hacker News — the comments are definitely worth a look. Oh, Afridigest.com is now accepting submissions from thinkgals and thinkbois too 🧠. And if you’re in Lasgidi, I’m planning an Afridigest Lagos meetup in October — sign up 🤝🏼.
🚨 If you’re interested in investing in Africa Tech, please fill out this form 🚨
If you’re new, welcome 🙌🏽 — (assuming no delays) this Week in Review goes out on Mondays, the Fintech Review goes out on Sundays, and (if you’ve opted in) the French-language Revue de la Semaine goes out on Wednesdays. And from time to time, an original essay/article goes out on Saturdays. For past essays and digests, visit the archive.
💡 “It is only when the flood is gone that you can claim to be lucky.” — Chewa proverb
» Click here to read this email in your browser, today’s newsletter is a pretty long one 🦚
Week 37 2022: September 11-17
📰 Deal of the Week
🇳🇬 Kobo360, a Nigerian on-demand trucking logistics and supply chain platform, publicly disclosed for the first time that it raised a $48M (debt & equity) Series B in December 2021 led by the Fund for Export Development in Africa (FEDA), the equity arm of Afreximbank, with participation from TLCom Capital, the IFC, Goldman Sachs spinoff Juven, and others.
About Kobo360: Founded in 2017, Kobo is a leading player in Africa’s trucking technology landscape. Put simply, it matches truck drivers with large companies needing their services, but also offers an embedded financing platform Payfasta which provides vendors and service providers with instant credit, and KoboSafe, an insurance product covering the risk of goods-in-transit & more. Its clients include Honeywell, Olam, Unilever, DHL, Nestlé, and Lafarge.
Obi Ozor, Founder & CEO
Emmanuel Assiak, Chief Investment Officer, Fund for Export Development in Africa (FEDA)
Yann Rogombe, Investment Director (FEDA)
I rarely call out fundraising announcement articles, but it’s worth reading Obi’s interview with Tage at TechCrunch here — it’s not your standard fare.
🔦 Other deals
OTHER FUNDRAISES ACROSS THE CONTINENT
🇰🇪 Turaco, a Kenyan insurtech platform, raised a $10M Series A co-led by Cathay Africinvest Innovation Fund (CAIF) and Novastar Ventures, with participation from Enza Capital, Global Partnerships, Zephyr Acorn, Operator Stack, Asi Ventures Limited, and Push Ventures
🇳🇬 Kippa, a Nigerian provider of digital business and financial management solutions for SMEs, raised an $8.4M seed round from Goodwater Capital, TEN13 VC, Rocketship VC, Saison Capital, Crestone VC, VentureSouq, Horizon Partners, and Vibe Capital
🇳🇬 Estate Intel, a Nigerian real estate data analytics platform, announced that it raised a $$500K pre-seed in 2021 led by MetaProp
🇳🇬 Capsa Technology, a Nigerian online marketplace for SME account receivables, was selected for the Techstars Detroit inaugural class of 2022 and receives $120K. (Techstars offers $20K in exchange for a 6% equity and an optional $100K convertible note.)
🇳🇬 Diagon Studios, a Nigerian gaming technology company focused on the development and distribution of hyper-casual games, utility, and NFTs through simple play-to-earn (P2E) models, raised an undisclosed amount from Adaverse
Nexford, a USA-based online university, raised an $8M Series A co-led by New Markets Venture Partners and Learn Capital, with participation from the Learn’s Emerging Markets Fund, Bisk Ventures, Global Ventures, Future Africa, AMK Investments, and the Future of Learning Fund. While proceeds from this round will be used to enter new markets, particularly those in Asia, as of 2021 at least, Nigeria was Nexford’s largest market.
MVP Match, a German talent matching platform that matches Product and Technology experts to companies, raised a $5M seed round from Stage 2 Capital. The platform recently launched a new talent hub in Egypt and will use proceeds from the fundraise to build new hubs across Africa.
GroDesto, an Algerian logistics platform, raised ~$1.4M (200M DA) via a public joint stock company offering. It’s the first company founded through a public call for investment in compliance with Algeria’s commercial code’s regulations.
M&A, STRATEGIC INVESTMENTS, & JVS
Kenyan revenue management, e-commerce, and online marketing platform HotelOnline acquired Kenyan hospitality software provider HotelPlus for an undisclosed amount. (This brings up memories of the ‘Nigerian Godfather’ saga.)
Janngo Capital announced the ~$36M (€34M) first close of a targeted ~$63M (€60M) fund. LPs include EIB, AfDB, Boost Africa, Proparco, Burda Principal Investments, and Muller Medien.
Africa-focused VC funds Unicorn Growth Capital and EchoVC joined the Celo Foundation in supporting Web3 projects across Africa.
📚 Quick hits
FOR YOUR READING PLEASURE
Market fit: The market side of Product/Market Fit — “When I say market fit, I mean discovering ‘market pull.’ What makes a customer need or want your product enough that they take immediate action to learn more, try, or buy? And what makes this pattern repeatable?”
The IKEA Effect - Why people fall in love with their own ideas — “This article explains when and why the IKEA effect emerges and introduces four ways you can defend against it.”
4 major problems with the lean startup methodology — Quality critique of what some consider biblical wisdom
The evolving healthcare product landscape — Interesting synthesis by Bessemer’s Morgan Cheatham of thoughts from various health product leaders on what ‘Product’ means in healthtech
🕵️♀️ In case you missed it
NEWS & ANNOUNCEMENTS
ESSAYS & REPORTS
Founder Factory Africa’s Malanee Hutton writes ‘Can tech really solve Africa’s job crisis?’
Hardware Things’ Chuma Asuzu writes ‘Supply chain resilience is a requirement for agritech hardware’
Communiqué’s David Adeleke writes ‘Fincra’s media recipe is a centuries-old classic’
The Mercy Corps Ventures team published ‘Mercy Corps Ventures Resilient Future thesis’
Flourish Ventures, in partnership with Bain & Company and 60 Decibels, published the 2022 Digitizing the Corner Shop report
To scale in African markets today, startups need to run hybrid strategies (Afridigest.com)
African startups disrupt nothing (Afridigest.com)
Super apps are proliferating across emerging markets (Afridigest.com)
Why fintech in Africa is attractive to investors & innovators (Afridigest.com)
Ten lessons I learned building in African Markets over the last decade (Afridigest.com)
CWG Plc: The story of 30-year-old Nigeria tech company that inspires us all (TechNext)
There was nothing special about raising $5 billion (TechCabal)
Technology is changing the face of farming in Egypt (Quartz)
African and Latin American tech unite (Rest of World)
Singapore and Africa: A South-South story (IFC Insights)
Did Edukoya lay off employees in order to become a fintech? (TechCabal)
Nigeria can’t support its tech talent. Now they are leaving. (TechCabal)
ARTICLES ON CAPITER’S IMPLOSION
Capiter and the shitshow (Termsheet)
What are the repercussions of Capiter’s downfall? (Wamda)
Is Capiter the latest casualty of the venture funding downturn in Africa? (TechCabal)
Open Letter to the tech ecosystem as a shareholder of Capiter (Shorooq Partners)
Meet the Founder: Ikenna Nzewi, Founder & CEO, Releaf (video)
Meet the Investor: William Phelps, Investment Manager, Adaverse
Meet the Executive: Ted Oladele, VP of Design at Flutterwave
👀 Visual of the Week
Did you know? South Africans hold the most private wealth in Africa followed by Egyptians, Nigerians, Moroccans, and Kenyans.
Together the five countries account for more than half of Africa’s total private wealth — that’s wealth held by all individuals living in an African country, all assets less any liabilities (and excluding government funds).
🐤 Tweets of the Week
This week we focus on ideas that bubbled up during the week:
E-commerce logistics powered by public transit? 💡
Is there an opportunity in optimizing B2B relationship management? 🤔
Climate monetization and basic services, you say? Tell me more. 🧝🏻
🗣️ Community Corner and Opportunities (feel free to send yours in)
⭐ If you’re in Lagos, I’m hosting a small meetup for Afridigest readers in early October — slots are limited so please sign up now
Spread the word: Plug and Play Egypt is accepting applications until October 1st for the 2nd cohort of its equity & fee-free program at the Sultan Hussein Kamel Innovation Hub
Spread the word: E-health & life science companies are invited to apply for $20K+ in funding and other Villgro Africa support before September 30
Spread the word: Daba is hosting its first African startups demo day on September 22nd 8PM WAT / 3PM EST — register here
Congrats to Marième Diop on joining the IFC’s VC arm as the Francophone Africa Regional Lead
Congrats to Biola Alabi on joining the Cairo Angels Syndicate Fund as a Venture Partner.
Congrats to Tokunboh Ishmael on the appointment to Endeavor Nigeria’s Board of Directors.
Congrats to planners & participants of the 1st African Venture Finance Program:
Thanks for reading Afridigest 🙌🏽
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